What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2023-11-14 compared with 2023-08-14 · 225 added, 127 removed, 181 unchanged (66% of the section changed)

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

following discussion of our financial condition and results of operations for the three months ended June 30, 2023 and 2022 should be

read in conjunction with our unaudited condensed consolidated financial statements and the notes to those statements that are included

following discussion of our financial condition and results of operations for the Six Months Ended September 30, 2023 and 2022 should

be read in conjunction with our unaudited condensed consolidated financial statements and the notes to those statements that are included

elsewhere in this report.

23 unchanged sentences

occupy manufacturing, warehouse, laboratory and office space at 165 Ludlow Avenue and 135 Ludlow Avenue in Northvale, NJ (the “Northvale

The Northvale Facility operates under Current Good Manufacturing Practice and is a United States

Drug Enforcement Agency registered facility for research, development and manufacturing.

We are also party to an

operating lease for office space at Pompano Beach, Florida (the “Pompano Office Lease”).

The Northvale Facility operates under Current Good Manufacturing Practice and is a United States Drug Enforcement Agency

registered facility for research, development and manufacturing.

We are also party to an operating lease for office space at Pompano

Beach, Florida (the “Pompano Office Lease”).

focus our efforts on the following areas:

4 unchanged sentences

product candidates in our pipeline including the products with our partners;

(iv) commercial exploitation of our products either by sales under our own label, by license and

the collection of royalties, or through the manufacture of our formulations;

and (v) development of new products and the expansion of

our licensing agreements with other pharmaceutical companies, including co-development projects, joint ventures and other collaborations.

(iv) commercial exploitation of our products either by sales

under our own label, by license and the collection of royalties, or through the manufacture of our formulations;

and (v) development

of new products and the expansion of our licensing agreements with other pharmaceutical companies, including co-development projects,

joint ventures and other collaborations.

focus is on the development of various types of drug products, including generic drug products which require ANDAs as well as branded

4 unchanged sentences

thereby allowing us to share costs of development and improve cash-flow.

the quarter ended December 31, 2022, the Company entered into an agreement with Pyros Pharmaceuticals, Inc.

(“Pyros”) pursuant

to which the Company sold to Pyros its rights in and to the Company’s approved abbreviated new drug applications (ANDAs) for its

generic Sabril drug.

The Company sold its rights to Pyros for $1,000,000, which was recorded as gain on sale of ANDA during the year

ended March 31, 2023.

There is no further action required by the Company regarding the rights which would affect future periods.

conjunction with the sale of its Product to Pyros, the Company executed a Manufacturing and Supply agreement (the “Pyros Agreement”)

Under the terms of the Pyros Agreement, the Company will receive an agreed-upon price per drug for the manufacturing and

packaging of Sabril over a term of three years.

Revenue per the Pyros Agreement will be recognized as control of the manufactured and

supplied drugs is transferred to Pyros (at the time of delivery).

of Termination of License, Supply and Distribution Agreement

September 14, 2022, the Company has provided written notice pursuant to the License, Supply and Distribution Agreement

between the Company and Elite Laboratories, Inc.

and Epic Pharma, Inc.

dated November 21, 2020 (“the Epic Agreement”) that

the Company and Elite Laboratories, Inc.

are now providing notice of termination of the Epic Agreement, with such termination to be effective

March 31, 2023.

own, license, contract manufacture or have contractual rights to receive royalties from the following products currently approved for

commercial sale:

HCl 37.5mg tablets

Phendimetrazine

Tartrate 35mg tablets

HCl 15mg and 30mg capsules

HCl 50mg tablets

2.5mg and 5mg capsules

Phentermine HCl 37.5mg tablets

Phendimetrazine Tartrate 35mg tablets

November 2012

Phentermine HCl 15mg and 30mg capsules

Naltrexone HCl 50mg tablets

Addiction Treatment

September 2013

Isradipine 2.5mg and 5mg capsules

Cardiovascular

Maleate Immediate Release 25mg, 50mg and 100mg capsules

Trimipramine Maleate Immediate Release 25mg, 50mg and 100mg capsules

Antidepressant

Dextroamphetamine

Saccharate, Amphetamine Aspartate, Dextroamphetamine Sulfate, Amphetamine Sulfate Immediate Release 5mg, 7.5mg, 10mg, 12.5mg, 15mg, 20mg

and 30mg tablets

Nervous System Stimulant

Sodium Capsules 25mg, 50mg and 100mg

Dextroamphetamine

Saccharate, Amphetamine Aspartate, Dextroamphetamine Sulfate, Amphetamine Sulfate Extended Release 5mg, 10mg, 15mg, 20mg, 25mg, and 30mg

Nervous System Stimulant

Succinate 5mg, 10mg, 25mg and 50gm capsules

Dextroamphetamine Saccharate, Amphetamine Aspartate, Dextroamphetamine Sulfate, Amphetamine Sulfate Immediate Release 5mg, 7.5mg, 10mg, 12.5mg, 15mg, 20mg and 30mg tablets

Central Nervous System Stimulant

Dantrolene Sodium Capsules 25mg, 50mg and 100mg

Muscle Relaxant

Dextroamphetamine Saccharate, Amphetamine Aspartate, Dextroamphetamine Sulfate, Amphetamine Sulfate Extended Release 5mg, 10mg, 15mg, 20mg, 25mg, and 30mg capsules

Central Nervous System Stimulant

Loxapine Succinate 5mg, 10mg, 25mg and 50gm capsules

Antipsychotic

39 unchanged sentences

Products Filed

the Company has filed a generic antimetabolite ANDA and a generic dopamine agonist ANDA and these products are under review by the FDA.

The Company also submitted an ANDA for pain management and intends to provide supplemental data in Q3 2023 to complete the filing.

the Company has filed a generic antimetabolite ANDA and a generic dopamine agonist ANDA and these products are under review by the

On August 17, 2023, the Company also submitted an ANDA for an opiate analgesic for pain management and it was accepted for review by FDA on September 19, 2023.

Products Not Yet Commercialized

30 unchanged sentences

may differ from these estimates and such differences may be material.

were no significant changes during the three months ended June 30, 2023 to the items that we disclosed as our significant accounting

Note 1, “Summary of Significant Accounting Policies” to this quarterly report on Form 10-Q includes policies

relating to the revenue recognition, nature of goods and services and accounts receivable and allowance for expected credit losses from

the sale of products bearing the Elite label, which were not included in Note 1 “Summary of Significant Accounting Policies”

to the Company’s financial statements as contained the Company’s Annual Report on Form 10-K for the fiscal year ended on March

Except for the foregoing, there

were no significant changes during the six months ended September 30, 2023 to the items that we disclosed as our significant accounting

policies and estimates described in “Note 1, Summary of Significant Accounting Policies” to the Company’s financial

4 unchanged sentences

necessarily indicative of future results.

months ended June 30, 2023 compared to the three months ended June 30, 2022

months ended September 30, 2023 compared to the three months ended September 30, 2022

Cost of revenue and Gross profit:

For the Three Months Ended June 30,

For the Three Months Ended

September 30,

Manufacturing fees

3 unchanged sentences

Gross profit - percentage

revenues for the three months ended June 30, 2023 increased by $1.3 million or 17%, to $9.0 million, as compared to $7.7 million, for

the corresponding period of the prior year, primarily due to increased sales of Amphetamine ER Capsules and Phentermine as compared

to the comparable period of the prior fiscal year.

revenues for the three months ended September 30, 2023 increased by $5.6 million or 65%, to $14.2 million, as compared to $8.6

million, for the corresponding period of the prior year, primarily due to the launch of the Elite label during the current fiscal

year which achieved increased sales for the quarter ended September 30, 2023, as compared to the comparable quarter of the prior

year, especially in sales of Amphetamine ER Capsules and Amphetamine IR Capsules.

Manufacturing

fees increased by $1.6 million, or 25%, primarily due to increased sales of Amphetamine ER Capsules during the three months ended

June 30, 2023 as compared to the comparable period of the prior fiscal year.

fees increased by $6.3 million, or 88%, primarily due to the launch of the Elite label during the current fiscal year which achieved increased sales for the quarter ended September

30, 2023, as compared to the comparable quarter of the prior year, especially in sales of Amphetamine ER Capsules and Amphetamine IR Capsules.

fees decreased by $0.7 million, or 54%.

This decrease is primarily due to licensing fees decreasing from the sales of Amphetamine IR

Tablets, Naltrexone Tablets, and Isradipine during the three months ended June 30, 2023 as compared to the comparable period of the prior

This decrease is primarily due to the expiration of the marketing alliance agreements between the Company and Lannett

Company, Inc.

dated March 6, 2019 and April 9, 2019 (the “Lannett Agreements”) on March 31, 2023.

The revenue streams that

were generated during periods ending on or prior to March 31, 2023 and attributed to the Lannett Agreements, included profit splits on

the sale by Lannett of Amphetamine IR and Amphetamine ER.

Since April 1, 2023, these products are now sold by the Company under its own

label, with revenues being recorded as manufacturing revenues instead of licensing fees going forward.

of revenue consists of manufacturing and assembly costs.

1 unchanged sentence

to $4.8 million for the corresponding period in the prior fiscal year.

This increase was due to an increased volume of products sold during

the three months ended June 30, 2023, as compared to the comparable period of the prior fiscal year, as well as a decrease in licensing

fees revenues as noted.

gross profit margin was 53% during the three months ended June 30, 2023 as compared to 52% during the comparable period of the prior

This increase was due to an increased volume of products sold

during the three months ended September 30, 2023, as compared to the comparable period of the prior fiscal year, as well as a decrease

in licensing fees revenues as noted.

gross profit margin was 46% during the three months ended September 30, 2023 as compared to 45% during the comparable period of the prior

The increase in gross profit margin is due to manufacturing efficiencies achieved in relation to increased production volumes.

For the Three Months Ended June 30,

For the Three Months Ended

September 30,

Operating expenses:

5 unchanged sentences

expenses consist of research and development costs, general and administrative costs, non-cash compensation and depreciation and amortization

Operating expenses for the three months ended June 30, 2023 increased by $0.2 million, or 6%, to $3.1 million as compared to

$3.0 million for the corresponding period in the prior fiscal year, largely due to an increase in research and development of $0.2 million.

and development costs during the three months ended June 30, 2023 were $1.1 million, an increase of $0.2 million, or 20%, from approximately

Operating expenses for the three months ended September 30, 2023 increased by $1.8 million, or 65%, to $4.5 million as compared

to $2.7 million for the corresponding period in the prior fiscal year, largely due to an increase in research and development of $1.4

and development costs during the three months ended September 30, 2023 were $2.6 million, an increase of $1.4 million, or 113%, from

approximately $1.2 million of such costs for the comparable period of the prior year.

The increase was a result of the timing and nature

of product development activities during the three months ended September 30, 2023 as compared to the comparable period of the prior

and administrative expenses for the three months ended September 30, 2023 were $1.5 million, which was virtually unchanged from $1.2

million in such costs for the comparable period of the prior fiscal year.

compensation expense for the three months ended September 30, 2023 and 2022 was less than $0.1 million.

and amortization expenses from the three months ended September 30, 2023 were $0.3 million, which was virtually unchanged from $0.3 million

in such costs for the comparable period of the prior fiscal year.

a result of the foregoing, our income from operations during the three months ended September 30, 2023 was $1.9 million, compared to

income from operations of $1.1 million for the comparable period of the prior fiscal year.

income (expense):

For the Three Months Ended

September 30,

Other income (expense):

Change in fair value of derivative financial instruments - warrants

$ (2,468,350 )

$ (3,156,669 )

Change in fair value of stock-based liabilities

Interest expense and amortization of debt issuance costs

Gain on sale of fixed assets

Gain on sale of ANDA

Interest income

Other (expense) income, net

$ (4,658,288 )

$ (5,103,897 )

income (expense) for the three months ended September 30, 2023 was an other expense of $4.7 million, a decrease of $5.1 million from

an other income of $0.4 million for the comparable period of the prior fiscal year.

The decrease was primarily due to a net increase

of other expenses of $5.2 million relating to the change in fair value of derivative instruments and stock-based liabilities

totaling $4.5 million, as compared to net other income of $0.7 million for the comparable period of the prior fiscal year and a net

decrease of other expenses of $0.1 million relating to decreased interest expense and amortization of debt issuance costs during the

three months ended September 30, 2023 as compared to the comparable period of the prior fiscal year.

The change in the fair value of

derivative instruments and stock-based liabilities is determined in large part by the change in the closing price of the

Company’s Common Stock as of the end of the period, as compared to the closing price at the beginning of the period, with a

strong inverse relationship between the fair value of our derivatives instruments and stock-based liabilities and decreases in the

closing price of the Company’s Common Stock.

Please see Note 12 to the Unaudited Condensed Consolidated Financial Statements

The decrease in interest expense associated with the loans payable is due in large part to the Company paying

off the principal balance of the EWB loan during the fiscal year ended March 31, 2023, resulting in no interest on the EWB loan

incurred for the three months ended September 30, 2023.

a result of the foregoing, our net loss before the net benefit from sale of net operating loss credits for the three months ended September

30, 2023 was $2.7 million, compared to net income of $1.5 million for the comparable period of the prior fiscal year.

months ended September 30, 2023 compared to the six months ended September 30, 2022

Cost of revenue and Gross profit:

For the Six Months Ended

September 30,

Manufacturing fees

Licensing fees

Total revenue

Cost of manufacturing

Gross profit - percentage

revenues for the six months ended September 30, 2023 increased by $6.9 million or 42%, to $23.1 million, as compared to $16.3

million, for the corresponding period of the prior year, primarily due to the launch of the Elite label during the current fiscal

year which achieved increased sales for the quarter ended September 30, 2023, as compared to the comparable quarter of the prior

year, especially in sales of Amphetamine ER Capsules and Amphetamine IR Capsules.

Manufacturing

fees increased by $7.9 million, or 58%, primarily due to the launch of the Elite label during the current fiscal year which achieved increased sales for the quarter ended September

30, 2023, as compared to the comparable quarter of the prior year, especially in sales of Amphetamine ER Capsules and Amphetamine IR Capsules.

fees decreased by $1.0 million, or 37%.

This decrease is primarily due to the expiration of the marketing alliance agreements between the Company and Lannett

Company, Inc.

dated March 6, 2019 and April 9, 2019 (the “Lannett Agreements”) on March 31, 2023.

The revenue streams that

were generated during periods ending on or prior to March 31, 2023 and attributed to the Lannett Agreements, included profit splits on

the sale by Lannett of Amphetamine IR and Amphetamine ER.

Since April 1, 2023, these products are now sold by the Company under its own

label, with revenues being recorded as manufacturing revenues instead of licensing fees going forward.

of revenue consists of manufacturing and assembly costs.

Our cost of revenue increased by $3.5 million or 42%, to $11.9 million as compared

to $8.4 million for the corresponding period in the prior fiscal year.

This increase was due to an increased volume of products sold

during the six months ended September 30, 2023, as compared to the comparable period of the prior fiscal year, as well as a decrease

in licensing fees revenues as noted.

gross profit margin was 48% during the six months ended September 30, 2023 as compared to 48% during the comparable period of the prior

The increase in gross profit margin is due to manufacturing efficiencies achieved in relation to increased production volumes.

For the Six Months Ended

September 30,

Operating expenses:

Research and development

General and administrative

Non-cash compensation

Depreciation and amortization

Total operating expenses

expenses consist of research and development costs, general and administrative costs, non-cash compensation and depreciation and amortization

Operating expenses for the six months ended September 30, 2023 increased by $2.0 million, or 34%, to $7.7 million as compared

to $5.7 million for the corresponding period in the prior fiscal year, largely due to an increase in research and development of $1.6

and development costs during the six months ended September 30, 2023 were $3.8 million, an increase of $1.6 million, or 72%, from approximately

$2.2 million of such costs for the comparable period of the prior year.

The increase was a result of the timing and nature of product

development activities during the three months ended June 30, 2023 as compared to the comparable period of the prior fiscal year.

and administrative expenses for the three months ended June 30, 2023 were $1.7 million, which was virtually unchanged from $1.7 million

development activities during the six months ended September 30, 2023 as compared to the comparable period of the prior fiscal year.

and administrative expenses for the six months ended September 30, 2023 were $3.2 million, which was virtually unchanged from $2.9 million

in such costs for the comparable period of the prior fiscal year.

compensation expense for the three months ended June 30, 2023 and June 30, 2022 was less than $0.1 million.

and amortization expenses from the three months ended June 30, 2023 were $0.3 million, which was virtually unchanged from $0.3 million

compensation expense for the six months ended September 30, 2023 was less than $0.1 million.

and amortization expenses from the six months ended September 30, 2023 were $0.7 million, which was virtually unchanged from $0.6 million

in such costs for the comparable period of the prior fiscal year.

a result of the foregoing, our income from operations during the three months ended June 30, 2023 was $1.6 million, compared to income

a result of the foregoing, our income from operations during the six months ended September 30, 2023 was $3.5 million, compared to income

from operations of $2.1 million for the comparable period of the prior fiscal year.

income (expense):

For the Three Months Ended June 30,

For the Six Months Ended

September 30,

Other income (expense):

Change in fair value of derivative instruments

Change in fair value of derivative financial instruments - warrants

$ (2,657,717 )

$ (2,845,893 )

Change in fair value of stock-based liabilities

Interest expense and amortization of debt issuance costs

Gain on sale of fixed assets

Gain on sale of ANDA

Interest income

Other (expense) income, net

income (expense) for the three months ended June 30, 2023 was $0.3 million, a decrease of $0.4 million from $0.7 million for the comparable

period of the prior fiscal year.

The decrease was due to decreased income relating to changes in the fair value of our outstanding derivative

warrants and increased interest expense and amortization of debt issuance costs during the three months ended June 30, 2023.

that the change in the fair value of derivative instruments is determined in large part by the change in the closing price of the Company’s

Common Stock as of the end of the period, as compared to the closing price at the beginning of the period, with a strong inverse relationship

between the fair value of our derivatives instruments and decreases in the closing price of the Company’s Common Stock.

see Note 12 to the Unaudited Condensed Consolidated Financial Statements above.

The decrease in interest expense is due in large part

to the Company paying off the principal balance of the EWB loan during the fiscal year ended March 31, 2023, resulting in no interest

on the EWB loan incurred for the three months ended June 30, 2023.

a result of the foregoing, our net income before the net benefit from sale of net operating loss credits for the three months ended June

30, 2023 was $1.3 million, compared to net income of $0.3 million for the comparable period of the prior fiscal year.

$ (4,963,551 )

$ (4,692,359 )

income (expense) for the six months ended September 30, 2023 was an other expense of $5.0 million, a decrease of $4.7 million from

an other expense of $0.3 million for the comparable period of the prior fiscal year.

The decrease was primarily due to a net

increase of other expenses of $4.9 million relating to the change in fair value of derivative instruments and stock-based

liabilities totaling $4.7 million, as compared to net other income of $0.2 million for the comparable period of the prior fiscal

year and a net decrease of other expenses of $0.2 million relating to decreased interest expense and amortization of debt issuance

costs during the six months ended September 30, 2023 as compared to the comparable period of the prior fiscal year.

Please note that

the change in the fair value of derivative instruments and stock-based liabilities is determined in large part by the change in the

closing price of the Company’s Common Stock as of the end of the period, as compared to the closing price at the beginning of

the period, with a strong inverse relationship between the fair value of our derivatives instruments and stock-based liabilities and

decreases in the closing price of the Company’s Common Stock.

Please see Note 12 to the Unaudited Condensed Consolidated

Financial Statements above.

The decrease in interest expense associated with the loans payable is due in large part to

the Company paying off the principal balance of the EWB loan during the fiscal year ended March 31, 2023, resulting in no interest

on the EWB loan incurred for the six months ended September 30, 2023.

a result of the foregoing, our net loss before the net benefit from the sale of net operating loss credits for the six months ended

September 30, 2023 was $1.4 million, compared to net income of $1.8 million for the comparable period of the prior fiscal

and Capital Resources

June 30, 2023

September 30, 2023

March 31, 2023

3 unchanged sentences

working capital (total current assets less total current liabilities) increased by $2.0 million from $13.7 million as of March 31, 2023

2023 to $15.4 million as of June 30, 2023, with such increase being primarily related to the increase in finished goods inventory and accounts receivable,

associated with increased customer orders during the three months ended June 30, 2023.

to $15.7 million as of September 30, 2023, with such increase being primarily related to the increase in finished goods inventory and

accounts receivable, associated with increased customer orders during the three months ended September 30, 2023.

of Cash Flows:

For the Three Months Ended

Net cash used in operating activities

For the Six Months Ended September 30,

Net cash (used in) provided by operating activities

$ (2,945,753 )

Net cash used in investing activities

$ (5,199,696 )

Net cash provided by financing activities

cash used in operating activities for the three months ended June 30, 2023 was $2.7 million, which included, without limitation, net income of $1.1 million, increased by depreciation and other non-cash expenses totaling $0.6 million and reduced by increases in accounts receivable and inventory totaling $4.8 million.

cash provided by financing activities was $4.0 million for the three months ended June 30, 2023 which consisted primarily of proceeds

cash used in operating activities for the three months ended September 30, 2023 was $2.9 million, which included, without limitation,

net income of $16.1 million, increased by depreciation and other non-cash expenses totaling $5.5 million and reduced by increases in accounts

receivable and inventory totaling $13.1 million.

cash provided by financing activities was $3.8 million for the three months ended September 30, 2023 which consisted primarily of proceeds

from related party loans payable totaling $4.0 million.

Promissory Note

June 30, 2023, the Company entered into a collateralized promissory note with Davis Caskey (the “Caskey Promissory

The Caskey Promissory Note has a principal balance of $1,000,000 and an interest rate of 9% for the first year and 10%

for an optional second year.

The Caskey Promissory Note is subject to the same covenants as are contained in the Hakim Promissory

The proceeds will be used for working capital and other

business purposes.

The original maturity date of the Caskey Promissory Note is June 30, 2024, with an optional second year

The second year extension must be exercised by both parties 60 days prior to the original maturity date.

June 30, 2023, the Company entered into a collateralized promissory note with Davis Caskey (the “Caskey Promissory Note”).

The Caskey Promissory Note has a principal balance of $1,000,000 and an interest rate of 9% for the first year and 10% for an optional

The Caskey Promissory Note is subject to the same covenants as are contained in the Hakim Promissory Note.

will be used for working capital and other business purposes.

The original maturity date of the Caskey Promissory Note is June 30, 2024,

with an optional second year extension.

The second year extension must be exercised by both parties 60 days prior to the original maturity

As of the date of this filing, the Company does not expect to exercise the second year extension.

Promissory Note

Company has entered into a collateralized promissory note with individual lenders with rates comparable to the EWB Term Loan but

with less restrictive covenants (the “Hakim Promissory Note”).

These covenants include filing timely tax returns and

financial statements, and an agreement not to sell, lease, or transfer a substantial portion of the Company’s assets during

the term of the Hakim Promissory Note.

On June 2, 2023, the Company entered into a Promissory Note with Nasrat Hakim, CEO

and Chairman of the Board of Directors, pursuant to which the Company borrowed funds in the aggregate principal amount of $3,000,000.

The Hakim Promissory Note has an interest rate of 9% for the first year and

10% for an optional second year and the proceeds will be used for working capital and other business purposes.

The original maturity

date of the Hakim Promissory Note is June 2, 2024, with an optional second year extension.

The second year extension must be

exercised by both parties 60 days prior to the original maturity date.

As of the date of this filing, the Company does not expect to exercise

the second year extension.

Company has entered into a collateralized promissory note with individual lenders with rates comparable to the EWB Term Loan but with

less restrictive covenants (the “Hakim Promissory Note”).

These covenants include filing timely tax returns and financial

statements, and an agreement not to sell, lease, or transfer a substantial portion of the Company’s assets during the term of the

Hakim Promissory Note.

On June 2, 2023, the Company entered into a Promissory Note with Nasrat Hakim, CEO and Chairman of the Board of

Directors, pursuant to which the Company borrowed funds in the aggregate principal amount of $3,000,000.

The Hakim Promissory Note has

an interest rate of 9% for the first year and 10% for an optional second year and the proceeds will be used for working capital and other

business purposes.

The original maturity date of the Hakim Promissory Note is June 2, 2024, with an optional second year extension.

second year extension must be exercised by both parties 60 days prior to the original maturity date.

As of the date of this filing, the

Company does not expect to exercise the second year extension.

April 2, 2022, the Company and Elite Labs entered into a Loan and Security Agreement (the “EWB Loan Agreement”) with East

10 unchanged sentences

The total transaction costs

associated with the EWB Mortgage Loan incurred as of June 30, 2023, were $13,251, which are being amortized on a monthly basis over ten

years, beginning in July 2022.

associated with the EWB Mortgage Loan incurred as of September 30, 2023, were $13,251, which are being amortized on a monthly basis over

ten years, beginning in July 2022.

The EWB Mortgage Loan contains customary representations, warranties and covenants.

These covenants include

maintaining a minimum debt coverage ratio of 1.50 to 1.00 tested annually and a minimum trailing 12-month debt coverage ratio of 1.50

As of June 30, 2023, the Company was in compliance with each financial covenant.

These covenants

include maintaining a minimum debt coverage ratio of 1.50 to 1.00 tested annually and a minimum trailing 12-month debt coverage ratio

of 1.50 to 1.00.

As of September 30, 2023, the Company was in compliance with each financial covenant.

Park Capital – July 8, 2020 Purchase Agreement

July 8, 2020, the Company entered into a purchase agreement (the “2020 LPC Purchase Agreement”), and a registration rights

agreement, with Lincoln Park Capital Fund, LLC (“Lincoln Park”),

pursuant to which Lincoln Park has committed to purchase up to $25.0 million of the Company’s Common Stock, $0.001 par value per

share, from time to time over the term of the 2020 LPC Purchase Agreement, at the Company’s direction.

The 2020 LPC Purchase Agreement

expired on August 1, 2023.

the three months ended June 30, 2023 and 2022, the Company did not issue any shares of Common Stock to Lincoln Park.

agreement, with Lincoln Park Capital Fund, LLC (“Lincoln Park”), pursuant to which Lincoln Park has committed to purchase

up to $25.0 million of the Company’s Common Stock, $0.001 par value per share, from time to time over the term of the 2020 LPC

Purchase Agreement, at the Company’s direction.

The 2020 LPC Purchase Agreement expired on August 1, 2023.

the three and six months ended September 30, 2023 and 2022, the Company did not issue any shares of Common Stock to Lincoln

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis